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Emerging excipient markets to outpace Western markets, report says

By Zachary Brennan , 30-Apr-2014

Experts have predicted emerging Indian and Chinese markets will outpace Western markets as the $2.3bn oral solid dosage form (OSDF) excipients global market grows at a sustainable rate.

The major markets of Europe and the United States have similar volume to the emerging markets of India and China, which currently stand at approximately 100,000 tons per region, the market values differ from one region to another, consulting and research firm Kline and Company notes in a recent report.

Due to this growing demand, the major markets will continue to flourish; however, it is worth noting that emerging markets will outpace major markets. Driven by the Indian and Chinese markets, the consumption of OSDF excipients is expected to grow at a healthy pace of 7.4% per year until 2018,” Nikola Matic, industry manager at Kline’s Chemicals & Materials practice, told in-Pharmatechnologist.com.

Details on China, India

In terms of specifics, Matic said that in the binders/fillers category, which represents the largest volume share, “starches are really representing large share in China and in India while they represent a lower share in Europe and in the US, where excipients such as cellulosics have comparatively a larger share.”

China and India will also “outpace the market in terms of growth rate,” and in terms of volume. While market volumes are similar across the four regions, in 2018, “total market volumes in China and India are expected to be significantly larger than in Europe and the US,” Matic told us.

Almost all excipients are expected to see growth in China and India, he added, noting that more specialty excipients -- such as cellulosics, co-processed excipients, povidone – “are expected to take advantage of larger growth than commodity type of excipients (mainly native starches).”

The differences across the markets are largely due to the different types of excipients -- mature markets are dominated by functional and usually more expensive excipients, while emerging markets are looking to use cheaper alternatives, such as native starches, according to recently published Specialty Excipients for Oral Solid Dosage Form Pharmaceuticals Global Series: Business Analysis and Opportunities by consulting and research firm Kline & Company.

Growth Drivers
Macro drivers, such as aging populations in mature markets and economic growth in emerging markets are primarily driving growth in the pharma industry, which is in turn driving growth in the excipient markets. More specifically, OSDFs are favored over other dosage forms, which again positively affect the market of OSDF excipients, the report found. In addition, a general preference towards tablets, as opposed to capsules, is driving growth of excipients used in tablets.

In the emerging Indian and Chinese markets, growth in consumption of excipients is driven by rising incomes and willingness to spend more on healthcare. Key factors driving growth in major markets like the United States and Europe include the aging populations and high demand for pharmaceuticals.
Meanwhile, the expansion of orally disintegrating tablets, a sub-segment within OSDFs, is seen as benefiting specific excipients, while the growth of functional excipients which allow controlled-release and sustained-release of active ingredients is also a micro-factor reshaping the consumption of excipients in both, mature and emerging market.
The report also notes that excipients such as povidone are seeing consumption increase significantly in some regions due to enhanced solubility.

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